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Colombia's state-owned transmission group ISA plans to participate in six tenders for new projects across the region during the remainder of 2012, the firm revealed in its 1Q12 results presentation.

Three of the tenders eyed by the company will be held in Peru, consisting of 220kV lines Carhuaquero-Cajamarca Norte-Moyobamba, Moyobamba-Iquitos and Machupicchu-Tintaya. ISA estimates investments in the three tenders, slated for 2H12, to reach US$535mn.

In Colombia, the company also plans to participate in separate tenders awarding contracts for the 140km, 230kV Chivor-Chivor II-North-Bacatá transmission line, as well as the construction of the 220kV Termocol substation and a reconfiguring the Termoguajira-Santa Marta line.

Meanwhile in Brazil, ISA revealed that it plans to bid in a tender to construct transmission lines linking the controversial 11.2GW Belo Monte dam in the northeast of the country to the national grid.

Figures in the region of US$2bn-3bn have been touted for the transmission line. ISA anticipates a tender for the project could be organized by state power regulator Aneel in 3Q12. The firm participates in the country through its subsidiary Companhia de Transmissão de Energia Elétrica Paulista (CTEEP).

ISA has also shown its intention to enter new markets this year, recently participating in a tender for trunk line transmission projects on Chile's central SIC power grid. The firm was one of eight to submit bids in the round, through which contacts worth an estimated US$800mn in investment will be awarded later this month.

The company is also overseeing the development of a 600km power line linking the Colombian and Panamanian grids for the first time.

The line will have an initial transmission capacity of 300MW, with the option to be extended up to 600MW. An auction for allocating the capacity is planned for this year, with the first power transactions between the two countries expected to take place in early 2015.

Brazil's national power regulator Aneel, created in 1996, is a government agency within the country's mining and energy ministry (MME) which is responsible for overseeing and regulating the generation, distribution, transmission and trading of electric power in the country.

São Paulo-based Companhia de Transmissão de Energía Elétrica Paulista (Cteep) is Brazil's largest private transmission company. Its 13,700km of transmission lines and 107 substations across 16 states, including São Paulo, Paraná, Minas Gerais and Goais, provide nearly 25% of the country with access to local and regional energy sources. CTEEP is con...

The Belo Monte hydro project will boast 18 611MW and six 39.9MW turbines. The project, part of Brazil's national growth acceleration plan (PAC), will create 42,000 direct and indirect jobs during the construction phase and supply power to an estimated 26 million people.

It is projected that the first turbine will be operational in 2015, to finally complete its launch in 2018.

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Methodology & Procedures

Definitions

Projects covered include state-owned and private projects in the Infrastructure, Electric Power, Oil & Gas (excluding upstream), Water and Waste, and Mining sectors.

Where applicable, a project is considered as such until the end of construction and ramp-up to full capacity (with the exception of mining projects, where the date of commissioning signifies the end of the project). Projects must have a:

Data

For state-owned projects, initial information about the start date and estimates for completion and investment are taken from original signed contracts, along with addendums and annexes.

If original contracts cannot be obtained, information is taken from public documents, presentations, news articles from BNamericas archives, and external sources.

In cases where contracts are subject to approval by legislators, the start date is the date of the law or legislative approval.

In the case of private projects, information is taken from public sources, such as stock exchange filings, annual reports, company presentations, third party research and press releases.

In judging the timing of investment decisions for private projects, great care was taken to differentiate between large projects receiving environmental approval and proceeding directly to construction, and smaller projects where the investment decision hinges on securing financing.

Best care is taken to ensure that recorded data is correct at the time of entry and that each entry is backed with a relevant source.

The greatest care possible was taken to ensure consistency of information in order make a like-for-like comparison in project costs. Insofar as the figures rely on disclosure by the organization or company responsible, the figures can be considered to be conservative in nature.

No attempt was made to adjust figures for inflation during the course of research or for consideration of the time value of money.

Validation

In the case of state-owned projects, validation is carried out where possible with either a member of the consortium, EPC contractor, a relevant state agency or advisors to either party.

Currency

Projects costs are measured in US dollars. Where project costs are measured in a local currency, amounts are converted to US dollars at the date of the relevant announcement, signature or report.

Severity of deviation from original estimates

The severity of deviation from original estimates is defined according to set criteria.

Timing

Status

Condition

Ahead of time

95% of original estimate or below (measured in months)

On time

95% to 105% of original estimate

Minor changes

105% to 120% of original estimate

Medium changes

120% to 160% of original estimate

Major changes

Over 160% of original estimate

Budget

Status

Condition

Ahead of budget

95% of original budget estimate or below

To budget

95% to 105% of original budget estimate

Minor changes

105% to 120% of original budget estimate

Medium changes

120% to 140% of original budget estimate

Major changes

Over 140% of original budget estimate

Changes in Scope

Changes in scope beyond the start date are not accounted for.

Language definitions

Where guidance is non-specific as to dates for completion, the following is used. Project to be completed by 2018 = December 31, 2017 Project to be completed in 2018 = December 31, 2018